Equity balanced funds remain attractive due to fine long-term track record

Despite the recent outflows and anaemic returns, the category makes sense due to its fine long-term track record

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Balanced funds, or aggressive-hybrid funds, which maintain an allocation of 65-80 per cent to equities, have seen considerable outflows in the recent past. Assets under management (AUM) shrunk from Rs 1,83,220.08 crore in August 2018 to Rs 1,66,874.08 crore, a fall of 20.38 per cent. But the category still makes sense for most investors. 

With the markets have not done too well over the past year and breadth of performance completely missing, the performance of these funds have taken a beating in the recent past. “If you